Supplemental Agreement No. 7 to Purchase Agreement No. 3860 between The Boeing Company and United Airlines, Inc. Relating to Boeing Model 787 Aircraft

Contract Categories: Business Finance - Purchase Agreements
EX-10.5 7 d116267dex105.htm EX-10.5 EX-10.5

Exhibit 10.5

CONFIDENTIAL MATERIAL APPEARING IN THIS DOCUMENT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION IN ACCORDANCE WITH THE SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24B-2 PROMULGATED THEREUNDER. OMITTED INFORMATION HAS BEEN REPLACED WITH ASTERISKS.

Supplemental Agreement No. 7

to

Purchase Agreement No. 3860

between

The Boeing Company

and

United Airlines, Inc.

Relating to Boeing Model 787 Aircraft

THIS SUPPLEMENTAL AGREEMENT No. 7 (SA-7), entered into as of March 7, 2016, by and between THE BOEING COMPANY (Boeing) and UNITED AIRLINES, INC. (Customer);

WHEREAS, the parties hereto entered into Purchase Agreement No. 3860 dated September 27, 2012, as amended and supplemented (Purchase Agreement), relating to the purchase and sale of Boeing model 787 aircraft (Aircraft). This Supplemental Agreement is an amendment to the Purchase Agreement;

WHEREAS, Boeing and Customer agree *** 787- *** with *** Aircraft under *** and *** 787-*** Aircraft as follows:

Figure 1

 

    

Aircraft

Type Prior

to SA-7

  

Manufacturer
Serial

Number

  

Original

Delivery

Month

  

Aircraft Type
Commencing

With SA-7

  

Manufacturer
Serial

Number

  

*** Month

***    ***    ***    ***    ***    ***    ***

NOW THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Purchase Agreement as follows:

(i) Boeing and Customer agree that such *** 787-*** Aircraft *** to the Purchase Agreement as *** Aircraft as such terms are defined in Purchase Agreement No. 2484 dated December 29, 2004, as amended and supplemented (Purchase Agreement 2484) for all purposes of Purchase Agreement 2484 and are further identified in Figure 2 below.

 

UAL-PA-3860

  SA-7   Page 1
BOEING / UNITED AIRLINES, INC. PROPRIETARY


Figure 2

 

   

Delivery Month

   
  ***  

(ii) Boeing and Customer agree to *** the following *** 787-*** Aircraft in the delivery months with *** dates as specified below in Figure 3:

Figure 3

 

Model

  

*** 787-*** Aircraft Delivery Month

***    ***

1. Table of Contents.

The “Table of Contents” is deleted in its entirety and replaced with the attached “Table of Contents” (identified by “SA-7”).

2. Tables.

2.1. Table 1 entitled “787-10 Aircraft with GENX-1B*** Engines Delivery, Description, Price and ***” is deleted in its entirety and replaced with the attached similarly titled “Table 1” (identified by “SA-7”).

2.2. Table 1 entitled “787-9 Aircraft Delivery, Description, Price and *** for *** Firm 787-9 Aircraft is deleted in its entirety and replaced with the attached Table 1 entitled “787-9 Aircraft Delivery, Description, Price and ***” (identified by “SA-7”).

3. Supplemental Exhibits.

Supplemental Exhibit BFE1 relating to Boeing Model 787-*** aircraft is deleted in its entirety and replaced with the similarly titled supplemental exhibit (identified by “SA-7”).

4. Letter Agreements.

4.1. Attachment B-1 to Letter Agreement UAL-PA-03860-LA-1209265R1 entitled “787-*** with GENX-1B*** Engines: *** Aircraft Delivery, Description, Price and ***” is deleted in its entirety and replaced with the attached Attachment B-1 (identified by “SA-7”).

4.2. Letter Agreement UAL-PA-03860-LA-1209413A1R2 entitled “Special Matters - Amendment 1” is deleted in its entirety and replaced with Letter Agreement UAL-PA-03860-LA-1209413A1R3 (identified by “SA-7”).

4.3. Letter Agreement UAL-PA-03860-LA-1301375 entitled “Provisions Relating to Customer’s *** for 787-10 Aircraft” is deleted in its entirety and replaced with Letter Agreement UAL-PA-03860-LA-1301375R1 (identified by “SA-7”).

 

UAL-PA-3860

  SA-7   Page 2
BOEING / UNITED AIRLINES, INC. PROPRIETARY


5. Miscellaneous.

Boeing and Customer agree to *** by Boeing from Customer as follows:

***

The resulting aggregate *** Supplemental Agreement No. 7. Such resulting *** of this Supplemental Agreement No. 7.

The Purchase Agreement will be deemed to be supplemented to the extent herein provided as of the date hereof and as so supplemented will continue in full force and effect.

EXECUTED IN DUPLICATE as of the day and year first written above.

 

THE BOEING COMPANY    UNITED AIRLINES, INC.

/s/ Irma L Krueger

  

/s/ Gerald Laderman

Signature    Signature

Irma L Krueger

  

Gerald Laderman

Printed Name    Printed Name

Attorney-in-Fact

  

Senior Vice President – Finance and acting Chief Financial Officer

Title    Title

 

UAL-PA-3860

  SA-7   Page 3
BOEING / UNITED AIRLINES, INC. PROPRIETARY


TABLE OF CONTENTS

 

ARTICLES           SA
NUMBER
Article 1.      Quantity, Model and Description    SA-1
Article 2.      Delivery Schedule    SA-1
Article 3.      Price    SA-1
Article 4.      Payment    SA-1
Article 5.      Additional Terms    SA-1

TABLE

  
1.      787-8 with GENX-1B*** Engines Aircraft Information Table ***    SA-3
1.      787-9 with GENX-1B*** Engines Aircraft Information Table ***    SA-5
1      787-9 Aircraft Delivery, Description, Price and ***    SA-7
1.      787-10 with GENX-1B*** Engines Aircraft Information Table    SA-7

EXHIBITS

  
A1.      787-8 Aircraft Configuration ***   
A2.      787-9 Aircraft Configuration ***    SA-4
A3.      787-10 Aircraft Configuration    SA-1
B.      Aircraft Delivery Requirements and Responsibilities   

SUPPLEMENTAL EXHIBITS

  
AE1.      Escalation Adjustment/Airframe and Optional Features   
BFE1.      BFE Variables for the 787-*** Aircraft    SA-7
CS1.      Customer Support Document   
EE1.      Engine Escalation/Engine Warranty ***   
SLP1.      Service Life Policy Components   

 

P.A. 3860

 

TABLE OF CONTENTS, Page 1 of 5

 

SA-7

BOEING/UNITED AIRLINES, INC. PROPRIETARY


TABLE OF CONTENTS, CONTINUED
     SA
NUMBER

LETTER AGREEMENTS

     

UAL-PA-03860-LA-1209247

  

787 e-Enabling

  

UAL-PA-03860-LA-1209264

  

Open Configuration Matters

  

UAL-PA-03860-LA-1209265R1

  

*** Aircraft

   SA-1
  

Attachment A, 787-*** Aircraft Delivery, Description, Price and ***

   SA-1
  

Attachment B-1, 787-*** with GENX-1B*** Engines: *** Aircraft Delivery, Description, Price and ***

   SA-7
  

Attachment B-2, 787-*** with TRENT1000-*** Engines: *** Aircraft Delivery, Description, Price and ***

   SA-3

UAL-PA-03860-LA-1209409

  

Spare Parts Initial Provisioning

  

UAL-PA-03860-LA-1209410

  

Special Matters Relating to COTS Software and End User License Agreements

  

UAL-PA-03860-LA-1209411

  

Special Terms – Seats and In-flight Entertainment

  

UAL-PA-03860-LA-1209417

  

Model 787 Post-Delivery Software & Data Loading

  

CONFIDENTIAL LETTER AGREEMENTS

  

UAL-PA-03860-LA-1209236R1

  

Model ***

   SA-1
  

Attachment A, 787-9 Airframe Pricing of *** Aircraft with General Electric GEnx-1B*** and Rolls Royce Trent 1000-*** engines

   SA-1
  

Attachment B, 787-10 with General Electric GEnx-1B*** and Rolls Royce TRENT 1000-*** Engines

   SA-1
  

Attachment C, 787-8 with General Electric GEnx-1B*** and Rolls Royce TRENT 1000-***

   SA-1

 

P.A. 3860

  TABLE OF CONTENTS, Page 2 of 4   SA-7
BOEING / UNITED AIRLINES, INC. PROPRIETARY


TABLE OF CONTENTS, CONTINUED

 

  

     SA
NUMBER
 

CONFIDENTIAL LETTER AGREEMENTS, continued

  

UAL-PA-03860-LA-1209412

  

Spare Parts Commitment

  

UAL-PA-03860-LA-1209413R1

  

Special Matters

     SA-1   

UAL-PA-03860-LA-1209413A1R3

   Special Matters – Amendment 1      SA-7   

UAL-PA-03860-LA-1209414

  

Other Special Matters

  

UAL-PA-03860-LA-1209413A1

  

Other Special Matters - Amendment 1

     SA-1   

UAL-PA-03860-LA-1209416R1

  

Promotional Support

     SA-2   

UAL-PA-03860-LA-1209430

  

Performance Guarantees

  

UAL-PA-03860-LA-1209455

  

*** – TERMINATED

     SA-1   

UAL-PA-03860-LA-1209429

  

***

  

UAL-PA-03860-LA-1209618R1

  

Alternate Engine Selection

     SA-1   

6-1162-ELP-0794

  

*** Program- ***

  

6-1162-ELP-0795

  

*** Program- ***

  

UAL-PA-03860-LA-1301368

  

Performance Guarantees (787-10)

     SA-1   

UAL-PA-03860-LA-1301373

  

787-10 Aircraft Open Configuration and Other Matters

     SA-1   

UAL-PA-03860-LA-1301375R1

   Provisions Relating to Customer’s *** for 787-10 Aircraft      SA-7   

UAL-PA-03860-LA-1301377

  

787-10 ***

     SA-1   

UAL-PA-03860-LA-1301377A1

  

787-10 *** – Amendment 1

     SA-4   

UAL-PA-03860-LA-1301380

UAL-PA-03860-LA-1500017

UAL-PA-03860-LA-1500059

  

787-10 Program Launch

Demonstration Flight Waiver

Installation of Cabin Systems Equipment

    

 

 

SA-1

SA-4

SA-4

  

  

  

 

P.A. 3860

 

TABLE OF CONTENTS, Page 3 of 4

 

SA-7

BOEING / UNITED AIRLINES, INC. PROPRIETARY


SUPPLEMENTAL AGREEMENTS

  

DATED AS OF

Supplemental Agreement No. 1    June 17, 2013
Supplemental Agreement No. 2    December 16, 2013
Supplemental Agreement No. 3    July 22, 2014
Supplemental Agreement No. 4    January 14, 2015
Supplemental Agreement No. 5    May 12, 2015
Supplemental Agreement No. 6    December 31, 2015
Supplemental Agreement No. 7    March 7, 2016

 

P.A. 3860

 

TABLE OF CONTENTS, Page 4 of 4

 

SA-7

BOEING / UNITED AIRLINES, INC. PROPRIETARY


Table 1 to

Purchase Agreement No. 3860

787-10 Aircraft with GENX-1B*** Engines Delivery, Description, Price and ***

(787-10/GE/***)

 

Airframe Model/MTOW:

   787-10   *** pounds   #   

Detail Specification:

      ***   

Engine Model/Thrust:

   GENX-1B***1   *** pounds     

Airframe Price Base Year/Escalation Formula:

   ***      

***

Airframe Price:

  $***     

Engine Price Base Year/Escalation Formula:

   ***      

***

Optional Features:

  $***     

Airframe Escalation Data:

        
    

 

             

Sub-Total of Airframe and Features:

  $***     

Base Year Index (ECI):

      ***   

Engine Price (Per Aircraft) :

  $***   1   

Base Year Index (CPI):

      ***   
    

 

             

Aircraft Basic Price (Excluding BFE/SPE):

  $***     

Engine Escalation Data:

        
    

 

             

Buyer Furnished Equipment (BFE) Estimate:

  $***     

Base Year Index (ECI):

      ***   

In-Flight Entertainment (IFE) Estimate:

  $***     

Base Year Index (CPI):

      ***   

 

# of
Aircraft

   Delivery
Date
  Number of
Aircraft
  Escalation
Factor

(Airframe)
  Escalation
Factor

(Engine)
  See footnote for
escalation
forecast being
used
  Serial Number +   Escalation
Estimate*** Base
Price Per A/P
  *** Per Aircraft (Amts. Due/*** Prior to Delivery):
                 ***   ***   ***   ***
                 ***   ***   ***   ***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ****   *   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   **   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   **   ***   $***   $***   $***   $***   $***
***    ***   ***   ***   ***   **   ***   $***   $***   $***   $***   $***
   Total:   ***                  

 

  BOEING / UNITED AIRLINES PROPRIETARY    787-10 with GE Engines Table 1 (SA-7), Page 1


Table 1 to

Purchase Agreement No. 3860

787-10 Aircraft with GENX-1B*** Engines Delivery, Description, Price and ***

(787-10/GE/***)

 

# of
Aircraft

 

Delivery
Date

 

Number of
Aircraft

  

Escalation
Factor

(Airframe)

  

Escalation
Factor

(Engine)

  

See footnote for
escalation
forecast being
used

  

Serial
Number +

  

Escalation
Estimate*** Base
Price Per A/P

  

*** Per Aircraft (Amts. Due/*** Prior to Delivery):

                      ***    ***    ***    ***
                     

***

  

***

  

***

  

***

 

1  Engine model, thrust and pricing are subject to GE agreement with Customer, i.e., to deliver GEnx-1B***.

 

* *** Escalation Factors ***

 

** *** Escalation Factors ***

 

# Purchased *** pounds. Aircraft are eligible for the provisions of Letter Agreement UAL-PA-03860- LA-1301375R1 entitled “Provisions Relating to Customer’s *** for 787-10 Aircaft”

 

+ Serial Numbers Idenitfied are for informational purposes only and subject to change

 

  BOEING / UNITED AIRLINES PROPRIETARY    787-10 with GE Engines Table 1 (SA-7), Page 2


Table 1

Purchase Agreement No. 3860

787-9 Aircraft Delivery, Description, Price and ***

(787-9/GE/***)

 

Airframe Model/MTOW:

   787-9    *** pounds1        

Detail Specification:

     

***

  

Engine Model/Thrust:

   GENX-1B***2    *** pounds        

Airframe Price Base Year/Escalation Formula:

   ***      

***

Airframe Price:

      $***        

Engine Price Base Year/Escalation Formula:

   ***      

***

Optional Features:

      $***        

Airframe Escalation Data:

        
     

 

                

Sub-Total of Airframe and Features:

      $***        

Base Year Index (ECI):

      ***   

Engine Price (Per Aircraft):

      $***        

Base Year Index (CPI):

      ***   
     

 

                

Aircraft Basic Price (Excluding BFE/SPE):

      $***        

Engine Escalation Data:

        
     

 

                

Buyer Furnished Equipment (BFE) Estimate:

      $***        

Base Year Index (ECI):

      ***   

In-Flight Entertainment (IFE) Estimate:

      $***        

Base Year Index (CPI):

      ***   

Refundable Deposit/Aircraft at Proposal Accept:

      $***   +               

 

# of Aircraft

   Delivery Date   Number of
Aircraft
  Escalation
Factor
  Escalation
Factor
  Serial
Number
  Escalation Estimate***
Base Price Per A/P
  *** Per Aircraft (Amts. Due/*** Prior to Delivery):
               ***   ***   ***   ***
       (Airframe)   (Engine)       ***   ***   ***   ***
   Block C Aircraft 1, 2, 3, 4                

***

   ***   ***   ***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   ***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   +***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   +***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   +***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   +***   ***   ***   $***   $***   $***   $***   $***

***

   ***   ***   +***   ***   ***   $***   $***   $***   $***   $***
   Total Block C   ***                

+*** for each of the aircraft marked with a “+” is $*** & is calculated as follows:

Step 1: Funds from ***

Step 2: Funds from ***

Step 3: Deposits ***

Step 4: Resulting sum of ***

 

APR 85133

  

Boeing / United Airlines, Inc. Proprietary

  

787-9 Table 1, Page 1, SA-6


Table 1 Purchase Agreement No. 3860

787-9 Aircraft Delivery, Description, Price and ***

(787-9/GE/***)

 

# of Aircraft

 

Delivery Date

 

Number of
Aircraft

   Escalation
Factor
   Escalation
Factor
  

Serial
Number

  

Escalation Estimate***
Base Price Per A/P

  

*** Per Aircraft (Amts. Due/*** Prior to Delivery):

                   ***    ***    ***    ***
      

(Airframe)

  

(Engine)

        

***

  

***

  

***

  

***

 

1 MTOW provided in accordance with MTOW Article 3.2 of Letter Agreement 6-1162-RCN-1936.

 

2 Engine model, thrust and pricing are subject to GE agreement with Customer, i.e., to deliver GEnx-1B***.

 

3 The Block C Aircraft shall be considered Block B Aircraft as defined pursuant to *** & for purposes of Letter Agreement 6-1162-RCN-1939 entitled ***.

 

4 The *** specified above are “Block C Aircraft” as such term is defined in *** for all purposes of***, EXCEPT as in footnote 3 above.

 

* Serial Numbers Idenitfied are for informational purposes only and subject to change

 

APR 85133

  

Boeing / United Airlines, Inc. Proprietary

  

787-9 Table 1, Page 2, SA-6


BUYER FURNISHED EQUIPMENT VARIABLES

between

THE BOEING COMPANY

and

UNITED AIRLINES, Inc,

Supplemental Exhibit BFE1

to Purchase Agreement Number 3860

relating to

BOEING MODEL 787-*** AIRCRAFT

 

P.A. 3860   

BFE1

  

SA-7

BFE1 Page 1

BOEING / UNITED AIRLINES, INC. PROPRIETARY


BUYER FURNISHED EQUIPMENT VARIABLES

relating to

BOEING MODEL 787-*** AIRCRAFT

This Supplemental Exhibit BFE1 contains supplier selection dates, on-dock dates and other requirements applicable to the Aircraft.

 

1. Supplier Selection.

Customer will:

Select and notify Boeing of the suppliers and model/part of the following BFE items by the first day of the following months:

***

 

2. On-dock Dates and Other Information.

On or before ***, Boeing will provide to Customer BFE requirements, electronically in My Boeing Fleet (MBF) through My Boeing Configuration (MBC) or by other means, setting forth the items, quantities, technical reviews, on-dock dates, shipping instructions and other requirements relating to the in-sequence installation of BFE. These requirements may be periodically revised by Boeing. Customer and Boeing rights and obligations related to the BFE requirements established in this Supplemental Exhibit BFE1 are set forth in Exhibit A to the AGTA. For planning purposes, the *** Aircraft preliminary BFE seat requirements and preliminary on-dock dates for all BFE items are set forth below.

2.1   The below “Completion Date” represents the first day of the month by when the specific milestone must be completed to support the BFE seat program.

Customer’s*** Aircraft: BFE*** Class Seat and*** Milestones (*** Aircraft Delivery Only)

Milestone

  

Completion Date

***

   ***

The above schedule dates are subject to change based on the dates negotiated and agreed to at the ITCM.

 

P.A. 3860   

BFE1

  

SA-7

BFE1 Page 2

BOEING / UNITED AIRLINES, INC. PROPRIETARY


2.2   Preliminary On-Dock and Customer Inspection Months: All requirements are set forth below. If a month is listed, then the due date is the first day of the month. If no date is listed, then there is no requirement.

***

 

P.A. 3860   

BFE1

  

SA-7

BFE1 Page 3

BOEING / UNITED AIRLINES, INC. PROPRIETARY


3. Additional Delivery Requirements - Import.

Customer will be the “importer of record” (as defined by the U.S. Customs and Border Protection) for all BFE imported into the United States, and as such, it has the responsibility to ensure all of Customer’s BFE shipments comply with U.S. Customs Service regulations. In the event Customer requests Boeing, in writing, to act as importer of record for Customer’s BFE, and Boeing agrees to such request, Customer is responsible for ensuring Boeing can comply with all U.S. Customs Import Regulations by making certain that, at the time of shipment, all BFE shipments comply with the requirements in the “International Shipment Routing Instructions”, including the Customs Trade Partnership Against Terrorism (C-TPAT), as set out on the Boeing website referenced below. Customer agrees to include the International Shipment Routing Instructions, including C-TPAT requirements, in each contract between Customer and BFE supplier.

http://www.boeing.com/companyoffices/doingbiz/supplier_portal/index_general.html

 

P.A. 3860   

BFE1

  

SA-7

BFE1 Page 4

BOEING / UNITED AIRLINES, INC. PROPRIETARY


Attachment B-1 to Letter Agreement UAL-PA-03860-LA-120965R1

787-10 *** Aircraft with GENX-1B***

Engines Delivery, Description, Price and ***

(787-10/GE/***)

 

Airframe Model/MTOW:

   787-10    *** pounds   #   

Detail Specification:

      ***   

Engine Model/Thrust:

   GENX-1B***¹    *** pounds     

Airframe Price Base Year/Escalation Formula:

   ***      

***

Airframe Price:

      $***     

Engine Price Base Year/Escalation Formula:2

   ***      

***

Optional Features:

      $***     

Airframe Escalation Data:

        
     

 

             

Sub-Total of Airframe and Features:

      $***     

Base Year Index (ECI):

   ***      

Engine Price (Per Aircraft):

      $***   1   

Base Year Index (CPI):

   ***      
     

 

             

Aircraft Basic Price (Excluding BFE/SPE):

      $***     

Engine Escalation Data:

        
     

 

             

Buyer Furnished Equipment (BFE) Estimate:

      $***     

Base Year Index (ECI):

   ***      

In-Flight Entertainment (IFE) Estimate:

      $***     

Base Year Index (CPI):

   ***      

Non-Refundable Deposit/Aircraft at Def Agreement

   $***   +            

 

# of Aircraft

   Delivery Date   Number of
Aircraft
  Escalation
Factor
  Escalation
Factor
  Option
Exercise
Expiry
Date
  Escalation
Estimate*** Base
Price Per A/P
  *** Per Aircraft (Amts. Due/*** Prior to Delivery):
               ***   ***   ***   ***
       (Airframe)   (Engine)       ***   ***   ***   ***
***    ***   ***   ***   ***   ***   $***   $***   $***   $***   $***
   Total:   ***                

 

1 Engine model, thrust and pricing are subject to GE agreement with Customer, i.e., to deliver GEnx-1B***.

 

2 Base year pricing is subject to confirmation by Customer with engine manufacturer.

 

+ If Customer does ***, Boeing will *** for that *** Aircraft and *** by Customer or United Continental Holdings, Inc. on any Boeing ***. If ***, then *** for Boeing *** and ***.

 

# Purchased MTOW is *** pounds. Aircraft are eligible for the provisions of Letter Agreement UAL-PA-03860- LA-1301375R1 entitled “Provisions Relating to Customer’s *** for 787-10 Aircaft”

 

APR 64695-1F.TXT

  

Boeing / United Airlines, Inc. Proprietary

   787-10 with GE Engines Table 1 (SA-7), Page 1


 

  

The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

UAL-PA-03860-LA-1209413A1R3

United Airlines, Inc.

233 South Wacker Drive

Chicago, Illinois 60606

 

Subject:    Special Matters — Amendment 1
Reference:    Purchase Agreement No. 3860 (Purchase Agreement) between The Boeing Company (Boeing) and United Airlines, Inc. relating to Model 787 aircraft (Aircraft)

This letter agreement UAL-PA-03860-LA-1209413A1R3 (Amending Letter Agreement) amends and supplements the Purchase Agreement and amends and supplements certain terms in Letter Agreement UAL-PA-03860-LA-1209413 (the Letter Agreement) ), and supersedes and replaces in its entirety letter agreement UAL-PA-03860-LA-1209413A1R2. All terms used and not defined in this Letter Agreement have the same meaning as in the Purchase Agreement.

 

1. Amendments to Article 1 of the Letter Agreement.

Article 1.4 was added by SA-6 to address the *** 787-*** Aircraftc at such time.

Subsequent to SA-6, the parties have agreed to a *** terms under SA-7 that serve to cancel such 787-*** Aircraft.

Accordingly, Article 1.4 is deleted by SA-7.

 

UAL-PA-03860-LA-1209413A1R3

Special Matters

     

Page 1

SA-7

BOEING / UNITED AIRLINES, INC. PROPRIETARY


 

2. Amendments to Article 4 of the Letter Agreement.

Article 4.4 is amended as follows:

4.4    *** Provisions for the Launch Aircraft. For the avoidance of doubt, the Launch Aircraft will be redefined to mean the *** 787-*** Aircraft purchased by Customer. The parties agree that *** of the Article 4.1 *** obligation will be *** delivery of each Launch Aircraft (Launch Aircraft *** Obligation). At time of delivery of each Launch Aircraft, Boeing will *** to *** the Launch Aircraft *** Obligation.

 

3. Confidential Treatment.

Boeing and Customer understand that certain information contained in this Letter Agreement, including any attachments hereto, is considered by both parties to be confidential. Boeing and Customer agree that each party will treat this Letter Agreement and the information contained herein as confidential and will not, without the other party’s prior written consent, disclose this Letter Agreement or any information contained herein to any other person or entity except as may be required by applicable law or governmental regulations.

Very truly yours,

 

THE BOEING COMPANY
By:  

/s/ Irma L Krueger

Its:  

Attorney-In-Fact

 

UAL-PA-03860-LA-1209413A1R3

Special Matters

     

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ACCEPTED AND AGREED TO this
Date:  

March 7, 2016

UNITED AIRLINES, INC.
By:  

/s/ Gerald Laderman

Its:  

Senior Vice President – Finance and acting Chief Financial Officer

 

UAL-PA-03860-LA-1209413A1R3

Special Matters

     

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The Boeing Company

P.O. Box 3707

Seattle, WA 98124-2207

 

 

UAL-PA-03860-LA-1301375R1

United Airlines, Inc.

233 South Wacker Drive

Chicago, Illinois 60606

 

Subject:

  

Provisions Relating to Customer’s*** for 787-10 Aircraft

Reference:    Purchase Agreement No. 3860 (Purchase Agreement) between The Boeing Company (Boeing) and United Airlines, Inc. (Customer) relating to Model 787aircraft (Aircraft)

This letter agreement (Letter Agreement) amends and supplements the Purchase Agreement. All terms used and not defined in this Letter Agreement have the same meaning as in the Purchase Agreement. This Letter Agreement replaces and supersedes Letter Agreement UAL-PA-03860-LA-1301375 dated June 17, 2013.

Subject to the terms, provisions, and conditions described herein, Boeing *** to Customer *** 787-10 Aircraft (787-10 Aircraft), as of the effective date (Effective Date) of the ***.

 

1. Customer’s ***.

Boeing *** to Customer, at a charge as described in paragraph 3 below, *** 787-10 Aircraft ***. The Effective Date of such *** shall be the date that Boeing provides ***, unless otherwise mutually agreed to. *** for the applicable 787-10 Aircraft is ***. Boeing will use its best reasonable efforts to provide *** not later than *** after receipt of Customer’s written request.

 

2. ***.

At the time of delivery of each 787-10 Aircraft, or *** after delivery of a 787-10 Aircraft, *** Customer. Such *** shall be ***, identifying the 787-10 Aircraft Manufacturer’s Serial Number (MSN), the delivery date and the Effective Date of ***. The *** shall also indicate ***. Customer may *** subsequent to the Effective Date. If ***, then Customer *** as outlined in paragraph 3 below.

 

3. ***.

*** in accordance with either the *** set forth below, at Customer’s option.

 

  3.1. *** 787-10 Aircraft.

If Customer elects to ***, then Customer shall ***

 

       ***

 

UAL-PA-03860-LA-1301375R1

*** Model 787-10 Aircraft

     

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  3.2 ***.

 

  3.3 ***.

 

  3.4 Customer’s ***.

 

       If Customer ***, the price for such *** shall be calculated as follows:

***

 

  3.5 ***.

 

UAL-PA-03860-LA-1301375R1

*** 787-10 Aircraft

     

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4. ***.

 

  4.1 ***.

 

  4.2 ***.

 

5. ***.

 

6. ***.

 

7. Confidential Treatment.

Boeing and Customer understand that certain information contained in this Letter Agreement, including any attachments hereto, is considered by both parties to be confidential. Boeing and Customer agree that each party will treat this Letter Agreement and the information contained herein as confidential and will not, without the other party’s prior written consent, disclose this Letter Agreement or any information contained herein to any other person or entity except as may be required by applicable law or governmental regulations.

Very truly yours,

 

THE BOEING COMPANY
By:  

/s/ Irma L Krueger

Its:  

Attorney-in-Fact

 

UAL-PA-03860-LA-1301375R1

*** 787-10 Aircraft

     

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ACCEPTED AND AGREED TO this
Date:  

March 7, 2016

UNITED AIRLINES, INC.
By:  

/s/ Gerald Laderman

Its:  

Senior Vice President – Finance and acting Chief Financial Officer

 

 

UAL-PA-03860-LA-1301375R1

*** 787-10 Aircraft

     

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Attachment A to

Letter Agreement UAL-PA-03860-LA-1301375R1

 

Date:  

 

United Airlines, Inc.

233 South Wacker Drive

Chicago, Illinois 60606

 

Attention:    ***
Reference:    Letter Agreement UAL-PA-03860-LA-1301375R1 to Boeing/UAL Purchase Agreement 3860

Transmitted by email

***

 

Very truly yours,
THE BOEING COMPANY
By:  

 

Its:  

 

 

 

UAL-PA-03860-LA-1301375R1, Attachment A

*** 787-10 Aircraft

  

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Attachment B to

Letter Agreement UAL-PA-03860-LA-1301375R1

***

 

 

UAL-PA-03860-LA-1301375R1, Attachment B

*** 787-10 Aircraft

  

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